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Economic Sectors - The Private Sector

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The factor market includes which of the following as factors of production?

a)

land, labor, capital, and entrepreneurship

b)

land, labor, and capital

c)

land only

d)

land and labor only

2.

A group of firms that work together to reduce competition is referred to as

a)

entrepreneurship

b)

private sector

c)

trust

d)

monopoly

3.

Which of these is where households buy goods and services that firms produce?

a)

private sector

b)

labor market

c)

factor market

d)

product market

4.

When two or more people come together to share resources and responsibility over a business, it is referred to as a

a)

nonprofit

b)

sole proprietorship

c)

partnership

d)

corporation

5.

A corporation can be best described as

a)

a business owned by stockholders, who own the rights to the company’s profits

b)

a business set up to provide a benefit to society

c)

a business co-owned by two or more partners who agree how to run it and share the profits or losses

d)

a business organization owned and controlled by one person

6.

According to the circular flow model of the private sector, what do households contribute to the product market?

a)

selling of land, labor, capital

b)

earn income from selling resources

c)

selling goods and services

d)

buying goods and services

7.

According to the circular flow model of the private sector, what do businesses contribute to the factor market?

a)

buying goods and services

b)

selling land, labor, and capital

c)

selling goods and services

d)

buying land, labor, and capital

8.

Which of these are examples of monopolistic competition?

a)

The Standard Oil Company purchases smaller competitors, eventually cornering 90% of the petroleum market

b)

McDonald's, Burger King, Wendy's, and Jack in the Box offer a variety of burgers, chicken, fish, and sides at comparable prices

c)

Levi's, Wrangler, Old Navy, and H & M sell blue jeans, varying in price based on the style

d)

Consumers can choose between cable, satellite, or streaming services like Hulu for television

9.

Which of these are examples of oligopoly?

a)

A group of gas station owners in a town work together to keep their prices similar, hoping to drive away competitors

b)

Hundreds of farmers across the nation grow and sell corn and allows for consumers to compare prices

c)

Large automakers like GM, Ford, Chrysler, Toyota and Honda dominate the American markets, making it hard for smaller automakers to have an impact

d)

A Wal-Mart opens in a small town, forcing many small businesses to close in the months following

10.

Which of these best defines unemployment?

a)

those that cannot provide basic necessities from themselves

b)

those that are able to work but unable to obtain a job

c)

those that are retired or unable to work because of disability